♪ welcome to "bloomberg markets" from new york. i am david gura. $14 billion, jack ma rakes down a big day on bloomberg. should amazon be worried? and a deal to buy anb him back, but now, how are they going to buy it and pay for it? a deal to buy ab inbev of. hyman has the latest. julie: we have had this over the last few sessions where we have a mixed session. we was he what happens in the next hour, where we have been seeing a little more decisiveness. -- we will see what happens in

the next hour. down -- up and down in a pretty tight range. you have got a lot of blue chips here, so general electric is higher today. microsoft has been gaining, and amazon trading at a record once again. wascompany price target moved over at morgan stanley. looking at the amazon web services, they say they could contribute up to 60% of the company's forward profitability, so that is what we have on the supported side, and then stock striking, we have got oracle was cut over at morgan stanley. they are talking about weakness, at least relative to competitors, and express scripts is falling. and the removal of a mail order

, andacy from its network there is a lawsuit with horror- -- horizon. and then blaming on warmer weather, people not going into by their winter coats. myid: and looking at terminal, that precipitous drop in macy's affected the retail space. julie: yes, we're seeing a lot of concern and the retail market. reports tomorrow. jcpenney sales actually beat estimates, and the stock turned around, and urban outfitters getting swept up in this, as well, and many companies that supply department stores are also down, like coach and ralph , and annd michael kors analyst over at one company who

covers retail, in his may see notes, they say they are getting increasingly concerned that real consumer spending is on the cusp of a major reset. yes, macy's can talk about the weather issue and some other issues. concerneding more that it is a broader problem and not a macy's-specific problem. david: julie, thank you very much. that is julie hyman at the markets desk. and now, let's get a check with mark crumpton. suspected bombing of a issian airline in egypt raising concerns about loopholes in the united states with many not subject to security searches. andr a series of drug weapons charges at u.s. airports, lawmakers are looking to expand screening and background checks. on this veterans day, president obama took part in ceremonies at

arlington national cemetery. go --inded people that we the veterans and that they are due the benefits they have earned. and a complaint that some associates were among 9 people killed in tuesday's crash of a small business jet in ohio when the plane slammed into an akron.nt building in the complex was destroyed. the associated press reports that nobody was home in any of the apartments when that crash occurred. so far, no word on what caused that crash, and the suspended president of the software body fifa was hospitalized on what might be considered a "small breakdown" related to stress. sepp blatter. and as more millennial women put higherriage, and face

expenses, more of them are living with their parents. 36.4 percent of young women lived at home last year. that is the highest level since 1940. part of the blame is the recession, but the study also strikings integrally for those between 18 and 34, and you can get more on these and other breaking stories 24 hours a day on bloomberg.com. from the bloomberg "first word" desk, i am mark crumpton. david: alibaba chocked up record sales, and the executive chairman and founder jack ma told bloomberg's emily chang that he has been preparing for today for quite a while. jack ma: we have a plan. we started in 2004, and we

judged what we should do to realize our dream in 10 years, so in 10 years, we will reach 50% of the revenues and money and sales from outside china. david: for more, let's bring in our bloomberg editor at yards -- .ditor at large y: look. how long is a day? it is however they want the number to be. it is important to understand that single day orders are not just single day, so that number is going to be kind of what they want it to be, but it is an intriguing business, and it is a very different business. emily asked jack ma about

comparisons to amazon, which is an adjusting one, a very different business. listen to what he had to say. jack ma: we want on our platform, there are a lot of companies that buy and sell and are using cloud computing and our logistics system and our payment system. enable every company to be an e-commerce company. we are not an e-commerce company. we want a lot of companies to have success. cory: what he said here is we are not an e-commerce company. what is it, if not an e-commerce company? it is certainly an e-commerce company. but it has a lot of assets, comparisons to ebay as it does so getting products

to people's houses, the trucks are also run by alibaba, so it is a very interesting and complicated company. it has also generated a ton of money for the company and for jack ma himself, and listen to what he had to say about spending money in hollywood. jack ma: i do not think they want to sell. can never buy everything in the world. emily: have you tried to buy it? jack ma: no. but i watch them with great respect. i think we can really work together. david: jack ma talking about perhaps an interest in buying some media properties as well as a newspaper in china. competentere is a entry relationship there when it comes to selling advertising, for instance. cory: they call it

single day. and it is also interesting that last year when it had a big singles they figure, analysts on wall street hook, line, and with it and jacked it up for the quarter and the year for alibaba, and then alibaba missed the numbers for the year, so the analysts got it but interesting company to look at. about let me just ask you what this says about the chinese economy, an economy that is trying to move more towards consumption. you look at what was sold today. nike, levi. what does that say about the state of the chinese economy? : we have seen a real big fall back in luxury items in china. the ceo of rolls-royce said

their sales are way down, and the ceo of mclaren said their sales are way down, and coach kong, their sales in hong so there are anticorruption investigations in china that are having a significant effect on luxury sales. we do not know how this is going to impact the lower end, but it is something to watch. david: ok, thank you. that was cory johnson, our bloomberg editor at large. and a big billion dollar deal. how is it going to be financed? on sportsng down fantasy sites, and can it survive? and in the latest gop debate, a report card. ♪

toid: welcome back "bloomberg markets," and we go back to julie hyman at the markets ask. have you been there? they sell out boy boots, and they have western gear, and they were out with earnings that actually masked estimates, and it is a forecast for earnings that is below estimates. the company says the total same-store sales for boot barn including for a company they rose,ed called shepler's

and you can see the boot barn shares, this is part of the selloff we were talking about a few moments ago. there is concern coming not just from big companies from macy's but from a boot bar in or from a dsw, which reported their numbers last week, and there are the inventory numbers that rto high, and we will get a broader look at retail later this week when we get retail sales, but barn, all of these shoe companies are lower today. and sunedison falling again sharply, coming out with numbers yesterday, reporting a wider loss than analysts anticipated, and it is falling again today on higher volume. they cited lower margins, and management confidence on an acquisition among other elements

and cutting the price target to six dollars from nine dollars, although, as you can see, it is trading below that level right now, and others are falling again once again today. sunedison, solar city, so also it of parts of the food chain, the installers, the suppliers of chips, all of them in decline. david: julie, thank you very much. julie hyman at the markets desk. has a deal, a transaction subject to shareholder approval, and regulatory hurdles. it would be the largest inland the industry, producing almost one in three of the world's beers, and we have more.

what does this deal look like? is it different from what we expected it to be? report: no, it is what everyone expected. 107.7the same price, billion dollars, and that is the largest this year until pfizer gets their deal done. i think the big winner here is going to be miller coors. happen,xpected that to and they get to grow more outside the united states, and it also catapults them to be the number two. david: talk about that spinoff. that is something they had to do to get this deal through? jeff: yes, they had to do that. and they had spinoffs in latin america and places like that, pieces that gets sold off. david: let's take a step back and talk about what motivated this deal and what it will mean

market.beer there are two companies that ofeady control a big swath this market. and people give them a lot of credit, their ability to run their companies pretty and they did that when they bought budweiser beers, and they will do that with sab miller, a generally speaking, the beer market is slowing, or the mega beer market sacking, because people are , anding wine or craft beer when you added up, there are just fewer beers being bought by these others. jeff: this was a small, regional player. they are right there in terms of procter & gamble and nestlé.

is pretty astonishing. they were a regional player, and now they are a global player, and this was all about africa. the reason they went after sab is that is where we will see twice or three times the growth than anywhere else in the world. there are millions of people that will be in drinking age in the next years, so it made sense. david: just following up something about what you said about the way ab inbev of runs its company, ruthlessly. seen asthink they were a juicy target, and what i mean by that, or was a place where a , andf heads could be cut synergies. which means people are going to lose their jobs. as you may recall, last year, sab made a run at heineken, hoping they would get too big abi, but that did not work

out. we think the ceo will be named in the near future. he has been the ceo of four companies in the last five ,ears, including bausch & lomb and it is roughly the same period of time they have been running pfizer, he has had all of these different jobs through acquisitions. david: all right, jeff, thank you very much, the head of our global deal seeing here on bloomberg. still ahead, a harsh reality for fantasy sports. they were told to cut it out. a $26 billion industry. ♪

♪

toid: welcome back "bloomberg markets." i am david gura. and in the fantasy sports, they are told it is gambling. guess. us is a talk about what this means for people who, right now, are playing fantasy sports, who have money invested. what happens to the money they put in? guest: well, think court now, there is a lot of looking around, wondering when the next shoe is going to drop. the attorney general of new york issued a very strong statement, looking at in simulations of criminal mischief with these

fantasy sites, and there is a whole populace of people out there. half a million for each of draftkings. a differentiation with games of skill, unless you ask the regulator. bese activities are not to engaged in by citizens of new york. david: the folks playing in new york right now, no one knows what is going to happen? each of the two fantasy gaming sites have time to reply to the attorney general. and it is challenge will -- court, andle in let's not forget that we have owners a professional leagues that have heavily invested in this industry because it is very

common entry and ancillary. nduel have and fa outspent all of the other categories during the nfl season, and they also provide sponsorship to individual teams, and it is also a way of increasing viewership, where you otherwise might not care. you may not be watching the game, but if you have a wide receiver on the jacksonville jaguars, you might stick around to see it if you have one of the receivers on your team. david: the distinction that eric schneiderman is hinging this on, what is the distinction that is being made? daniel: ok, sure. inst of all, this was back 2006 when these types of fantasy gaming operations were exempt from a federal law aimed at gambling, and essentially, the distinction hinges upon whether or not fantasy gaming is a game

of skill or a game of chance. initially, the fantasy gaming industry started out more as a season-long type of program. what has caught the attention of the attorney general as well as various politicians in new york, new jersey, throughout the country is that now this has migrated into a daily type of activity, and they believe that more of ans a lot element of chance into it, but, as i said, this has always been a very slim reed to hang on. david: seth harris was here, the head of the industry group, and i asked whether i'm not the industry was moving a little too slowly -- whether or not the industry was moving a little too slowly to self regulate. industry-run regulation and off? daniel: i think the tip of the

iceberg started when you had the so-called insider trading scandal, and then the fantasy industry started scrambling around. they took a page right out of the corporate lawyers' handbook. care of ourselves and we will set up a trade organization. we will hire outside investigators. best practices and codes of conduct, etc., etc.," but there seems to be a groundswell of focus that some sort of regulation is inevitable, and where i think next is whether we are point to have individual state regulation or federal regulation. david: daniel, thank you very much. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. david: from bloomberg headquarters in new york, this is "bloomberg markets," and i am david gura.

mark crumpton is at the desk. mark: calling for a new constitution to be drafted to allow syrians to vote on the cost tuition and then choose a president. says that the syrian president bashar al-assad would play no role in developing the constitution. president obama says veterans day is about more than showing gratitude for those who served in the military following ceremonies at arlington national ceremony. said americans should help assure that veterans receive the care and the benefits they have earned. a texas grand jury has indicted 106 people in connection of a mate shooting outside a waco restaurant that left nine people dead and 20 others dead. more than 430 weapons were recovered from the crime scene, including 151 firearms. are expected.ts

in indonesia, the fire brigade is getting some big-time help to control stubborn forest fires. they are calling in the pachyderm patrol. almost 200 trained elephants are being used as trained watchdogs, being outfitted with hoses to help contain fires. you can get more on these and other breaking stories 24 hours a day on the new bloomberg.com. word"he bloomberg "first desk, i am mark crumpton. david: thank you, mark. yesterday, prosecutors name direct hackers named against the attack against j.p. morgan last year. cyberg me is a cheap as security officer and any forget of editor of bloomberg who covers white-collar crime. guest: first of all, he used a word that i think is very apt,

calling it breathtaking. i think that is very apt. hacking into financial institutions and publications in order to collect all kinds of consumer data against enterprises, including securities manipulation. david: do we have any idea how they found those responsible, how they were able to track them down? being: they were investigated individually at the time, including the one against the trade, and that was being investigated out of atlanta, and they said, wait a minute. another, and prosecutors managed to hone in on the group. it had tentacles around the world, very complicated. there is an israel a component. was flashing through cyprus and swiss banks, and it really has got many, many layers.

david: yesterday, they sat down monihavid -- with brian n, and here is what he had to say. ihan: what i see going forward is that it continues to move forward, so we can find the .eople david: and i want to turn out to tom and ask about what brian there.n was saying how strong is that, can it be stronger, and why is he about him being targeted? tom: financial institutions need to maintain trust in their systems, but most important, i think they have collaborative work with the governments, but

the problem here is that these hackers have truly not behind bars now. they are still walking freely behind the iron curtain. david: when you talk to companies, what is the first thing you tell them to do? tom: the current percentage is less than 10% of their budget being spent on cyber security. at is insufficient. realize that hackers will get past the firewall. someone is when already in your bald, versus trying to discern if they are trying to get through the front doors? david: winnie, when you look at how quick they are to track these people down, are we able to keep up with what is happening? winnie: law enforcement is really challenged by this, and i have talked to them about it.

the fundamental problem, as tom as alluded to, there is co-conspirator number one, and nothing else is given. he is believed to be in russia, and that is a real challenge for you and we are not going to be it iso extradite him, and a matter of great sensitivity. shutting someone like that down who might have a massive campaign into lots of part of our country is very, very challenging. david: this is very much like the old crime syndicates of your. winnie: they stole information that allowed them to make money illegally. they were running classic schemes. this could be the largest boiler room ever. you pump up a tiny stock and do a reverse merger of it. you cash out and make your money, and then these smalltime investors are left holding the bag. the other way was online

gambling, which was probably their most lucrative enterprise. them. tom, i about hiring people for the kind of work that you do. are there people that are equipped to do the kind of cyber security work that you are involved in? talk: no, there are not, because they have to make the decision if they are going to be right just in work for the underground themselves, and most do have a get ability choose to be independent operators, but we need to appreciate the fact that this is not the only group out there. there are numerous other groups operating freely that have penetrated financial institutions, and their primary goal is front running, and we must respect the goal that that is exactly what they are after, market information prior to what the market knows. david: we now have chips on our cards, like in europe and other places. where is technology had it? how much safer can we be?

winnie: that is a combo get a question that i do not feel capable of answering, but it is becoming more and more apparent that the spending is growing by leaps and bounds. jpmorgan has what is best defenses against cyber attacks, and yet, somebody was able to get inside. at stockeing this exchanges, financial firms, all kinds of places, including the u.s. government, which has been attacked with very high profile cases. a newis creates possibility for the u.s. government, how much they have to go on the offense to shut it down. david: what scares law enforcement the worst? is it the fact that a power plant and be taken down? is it utilities? what keeps them up at night? is a good question. i think everyone will have a different answer, but i think

disruption to the financial system is a great concern. to be actingn able however they want, and it suggests, oh, my god, can they pull something at a particular moment and do great damage, disrupting u.s. global economy? that is not the only fear. there are lots of other them -- others. 42% of the financial institutions who were surveyed noted they deals with delete and destroy attacks. that report is available, but that is terrifying to me, the fact that you legitimately are dealing with actors who may want to manipulate the integrity of market data. that could undermine the very safety and soundness of the sector. and,: ok, tom, thank you, well., thank you, as coming up on "bloomberg the gop debate.

we have a report, and the history of the new york stock exchange, including the great bust,sion and the dot com and stocks are mixed between gains and losses as there is more mixed news out of china. ♪

♪ david: welcome back to "bloomberg markets." it is timegura, and to look at some of the biggest business news. luke times a has canceled some flights after failing to stop a strike by flight attendants. courts will allow this strikes to continue.

it will affect things in düsseldorf. to cut costs,g and jc penney says it will open at three :00 p.m. eastern time on thanksgiving day and will begin their black friday sale at that time, offering free shipping for all orders over $49, and some will close on thanksgiving for the first time, addingd the crab shack, locations across the u.s., believed to be the first major chain to try a no tipping policy for servers. they will get an increase in pay to $14 an hour. increase ine an menu prices. you can get more news on bloomberg.com. and looking at some calls this afternoon. yes, let's start with one stock that is going down pretty sharply, and that is greenmount. the stock is down about 6%.

it was downgraded to a negative by one company, saying their sales trends have not been very strong despite more , and the full earnings are out on november 18. we have also been watching amazon. it is trading on a record with a 2% gain. raised $800rget was from $750. around $672. this has to do with the web service part of the business. this has really been a growth target so far for amazon recently. and the web services will contribute nearly 50% of their forward profitability. also, sticking with text and with the cloud, oracle was fromraded to equal weight overweight also at morgan stanley. onre is a $45 price target

this stock. they say the positive cloud bookings were unable to fuel multiple expansions that we have seen and other so-called cloud transition stories. more legacy text trying to make the transition more towards the cloud. morgan stanley is saying that the crowd revenue growth will contribute 5% of the company revenues in the current quarter and contrast that, obviously, with what is going on at amazon. david: thank you very much, julie. that is julie hyman at the market desk. and many watched the debate last night, and one of the hot topics was whether the candidates would rescue banks in the future. out the big bail banks again? nobody gave you an answer. i will give you an answer. absolutely not. >> banks have a high risk, and if we were serious about it, we would raise the capital

requirements and lessen the load on the community banks. david: mark halperin was in milwaukee last night. that me ask you, in your estimation, who won last night? it looked like marco rubio had a pretty good night last night. who did well? rubio and cruz had a good night. they were comfortable with their messages, feeling like they can win with what they are currently doing. donald trump and ben carson continue to lead the polls, so i think what emerged is that those four are the poll leaders. cruz and rubio the rising once. david: it looks like a pretty solid 3.0 if we are going to give them a gpa last night. : my grades are based on

performance but also based on the extent to which their performance impacted that person a bus to be as chance of being the nominee. sayybody got a chance to something more or less, and they can all feel good and go back to their supporters and donors and say, "this is what i am running on." david: you spoke to paul ryan, the speaker of the house, and you asked him what he had to say about the debate. let's hear what he had to say. speaker ryan: i think our energy is on our side of the isle. and i love that our candidates are putting out what they're going to replace obamacare with, specifics, solutions. david: is that what we were hearing last night? a stone concrete policy, or was it trying to get in more words? mark: there was tax policy that got discussed, trade, defense

policy, but you have to say on the main, the candidates on that stage agree with a whole bunch of stuff compared to hillary clinton. think paul ryan and a lot of republicans would like to say that republicans are winning on specificity. ted cruz has begun to talk about his tax plan, but for the most part, the marco rubio tax plan, i think most voters do not know that it exists. he does not talk about it, and certainly, donald trump and ben carson you could not say they were running on policies. i think they realize that some of these candidates are coming up short. thought the most attractive policy proposal a ben carson was, and he said tax reform, but clearly, he does not think that ben carson is all of the way there. david: tax poly is something that -- tax policy is something that paul ryan thinks about.

and another thinks he is being overly scrutinized and thinks that hillary clinton has not been scrutinized enough and that perhaps barack obama was not. he did a nice job appealing to the supporters in the room, the supporters at large, but not creating a sound bite, and we are not playing one now because he did not create a dramatic moment, but he did put this to bed, and i thought over the weekend and going forward that a lot of these charges against him were not as specific or damaging on the merits as some people were saying they were, and while i do not think the issue is over, there is ill a look at his biography. i do not think those issues are going to matter without any new real information about his credibility with his current supporters. david: what role, if any, did hillary clinton, the presumptive front runner -- she tweeted out herselfht a video of

watching the debate -- what role does she play? are they beginning to use her as a foil? mark: jeb bush came to talk not about his republican rivals but about hillary clinton and barack anda and to line them up, there is a section of a few of the candidates, like chris christie, that there has not been an effort to say that hillary clinton is likely to be the democratic nominee, and here is my indictment. but to a broader electorate to win a general election, because while she is a flawed candidate, she still has a lot of strength. any candidate would in a presidential year. david: all right, mark halperin, thank you. john heilemann tonight, and one of the guests is someone who has represented

many critical campaigns and candidates. that is tonight. and coming up, big blue. agoisted exactly 100 years today, but is it a good buy? we will take a look, after the break. ♪

david: welcome back to "bloomberg markets." i am david gura. let's go to abigail doolittle for an update. abigail: hillary are about an hour away from the closing bell, and let's look at one of the worst-performing stocks and one of the best-performing stocks at the nasdaq. rating, andcut a the firm says that additional promotion for the curate --keurig 2.0 machines are decelerating.

off more than 60% year to date, and greenmount is trading at a significant discount. this could suggest that the stock's investor base may start to go towards value investor and away from momentum investors. november 18, to see the degree of expected year-over-year earnings and revenues for a second quarter in a row. turning now to a winner. amazon. shares a trading at a fresh record high after morgan stanley from 750.m to 800 the cloud will contribute a large amount to their profitability. certainly a good day at amazon but a stunning year with shares more than doubling since january, and the new morgan suggestsrice target amazon could climb nearly 20% from current levels. david: thank you, abigail

doolittle. greatrviving the depression and becoming one of the iconic names in technology, but some investors are wondering if the best days of ibm are behind it. --loomberg news investor reporter is with us. it was not called ibm. what was it called at the time? selling thingss from typewriters and punchcard machines, the precursor of the selling, and they were software and services, and now, they are in the midst of this. david: ok, that was back then. .ow, the second-biggest the stock is not doing that great. jing: last year, the ceo of banded an item at $20 a share, and that started the selloff,

and this transition is going to take a while. david: i think of what this company was and what it is today, and i have trouble articulating what it is that ibm does. so here we are over 100 years in. what does ibm do? it is no longer making a pc or laptop. what does it do? selling is still hardware and software and services. they are moving into the data, and what you're looking at what amazon is doing, and they are still very focused on selling their services and what that looks like to them. david: something you pointed out in your piece which is an amazing statistic, if you look at growth in the dow -- i'm sorry, six thousand percent growth, and an extraordinary comparison there. warren buffett has bought a lot. and he still continues to do so.

g: the thing that ibm has going for it is it has a strong tradition of buying back stock and issuing dividends, and that is great for a lot of investors. they havee time, it had a number of transitions and have been able to bounce back. david: thank you very much from bloomberg news. if you want more tech news, make sure you tune in tonight to "bloomberg west," where they will be joined by a ceo, lyndon rive. ♪

>> it is 3:00 p.m. in new york, 8:00 p.m. in london, and 4:00 p.m. in hong kong.

welcome to "bloomberg markets." from bloomberg headquarters in new york, good afternoon. i'm betty lou. here is what we are watching at this hour. investors continue to debate whether the economy is strong enough to handle a december rate hike. the biggest corporate loan on record. finance theto biggest beer deal in history. get a cold one. allie baba roxette set more than $14 billion in -- allie baba racks up more than $14 billion in commerce today. we will hear more. we are about an hour away